Taiwan’s defense spending will gradually increase to 5% of its GDP, Defense Minister Wellington Koo confirmed on Thursday. This announcement follows calls from a prospective US defense official urging Taiwan to raise its military budget amid growing regional threats. The move marks a significant step in Taiwan’s efforts to strengthen its military capabilities.
Minister Koo spoke during a Legislative Yuan session, emphasizing that Taiwan’s defense spending is carefully aligned with the threats the country faces. He highlighted the government’s goal to build asymmetric defense capabilities and enhance the resilience of its forces. Koo also noted that the plan includes improving reserve forces and mobilization systems.
The increase will happen over time, with core defense expenditures expected to exceed 3% of GDP next year. Eventually, the budget aims to reach President Lai Ching-te’s target of 5%. Koo acknowledged that fiscal limits must be considered, so the government will pursue this growth gradually.
This announcement comes shortly after John Noh, nominee for US Assistant Secretary of Defense for Indo-Pacific Security Affairs, suggested that Taiwan raise its defense spending to 10% of GDP. Noh warned of the existential threat Taiwan faces and emphasized the importance of training and mobilization in military reforms. However, Taiwan’s leadership appears focused on a more measured approach.
Former US Deputy National Security Advisor Matt Pottinger also recently warned about the potential for China to provoke a serious crisis without full-scale war. He suggested that Beijing might use economic or administrative pressure against Taiwan within four years. Minister Koo responded by stressing the need for a whole-of-government and whole-of-society approach. This strategy aims to build resilience against both military and non-military threats.
Taiwan’s defense spending increase reflects the island’s strategic priorities amid rising tensions in the Indo-Pacific region. The government continues war games and live-force drills to ensure a battle-ready military. These steps aim to deter aggression and secure Taiwan’s future.
Looking ahead, Taiwan plans to keep developing its defense systems and improve its military readiness. The government will balance budget growth with fiscal responsibility. Defense spending remains a critical part of Taiwan’s security policy as regional dynamics evolve.
